TD Cowen Reiterates Hold Rating on Recursion Pharmaceuticals (RXRX)

TD Cowen analyst Brendan Smith reiterated a Hold rating on Recursion Pharmaceuticals (NASDAQ: RXRX).

The analyst commented, "Ongoing EXAI merger should drive $100M+ in cost synergies as focus shifts to upcoming key data readouts from REC-4881 (MEK1/2i) in FAP (prelim efficacy + safety) & REC-2282 (pan-HDAC inhibitor) in NF2 (PFS6 futility) expected in H1:25 alongside multiple study starts. Key progress evidenced by tech/platform KPIs gives fresh insight into TechBio progress/differentiation."

"Our Take: Collab Revs Drive A Lumpy Q4 Though Mgmt Remains Bullish On KPIs Q4 revs of $4.5M (-57% y/y) missed our $19M due to timing of projects related to the company's Roche/Genentech partnership. Q4 R&D of $98M (+30% y/y) tied to continued platform & company expansions as G&A expenses of $77M (+61% y/y) were driven by costs related to the EXAI-RXRX merger (increase in salaries, transaction costs & software + lease expenses), bringing FY24 OpEx to $493M, well above our $426M. That said, management reaffirmed expectations to capture >$100M in run-rate synergies from the merger over time (see our note here), with the majority expected in 2025."

For an analyst ratings summary and ratings history on Recursion Pharmaceuticals click here. For more ratings news on Recursion Pharmaceuticals click here.

Shares of Recursion Pharmaceuticals closed at $7.67 yesterday.

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